Which of the Following Was True About Employee Stock Options

question 6

Multiple Choice

Which of the following was true about employee stock options between 1996 and 2004?

• A) The options never had any affect on a company's financial statements
• B) The value of options which were at-the-money when issued had to be expensed on the income statement
• C) The value of options which were at-the-money when issued had to be reported in the notes to the financial statements
• D) Options which were at-the-money when issued did not affect a company's financial statements

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Definitions:

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The male reproductive cells that are necessary for fertilization of the female ovum, leading to pregnancy.

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Refers to the biological distinction of being male or female assigned to a child at birth.

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An imaging method that uses high-frequency sound waves to produce images of structures within the body, often used in pregnancy.